Banking Securities

This document provides information on banking securities, including the execution of debentures, guarantees, and the process of signing documents. It also discusses the importance of deeds and the role of witnesses in guarantee agreements.

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BANKING SECURITIES
Group Names
Banking Securities
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Banking Securities
Execution
Following the fact that the Export Bank owe RM500,00 to the Fair bank, it requires the deed for
the legal charge in order to settle the debt. However, the deed in this case is offered by the FTSB
for the security of the RM1 million and the RM2 million offered to the company (FTSB, 2010).
The Fair Bank in this case has to promise returning the tittle deed after the RM500,000 debts is
settled in order to discharge the Export bank.
FTSB company on the other hand is liable of signing the official seal of the stamped debenture.
The documents which are signed by the two firm officials in this case will have an identical
impact provided the signature is placed under the official seal of the company. In this case,
authentication for acting as the trustee of the creditor is presented to a predetermined bank,
corporate bodies liable of conducting financial operations, insurance companies and public
financial institutions. The debenture is said to be executed when the contractual intention of one
or more parties to deliver the debenture is met.
While placing the signature for the sale of land, the vendor has the responsibility of signing the
memorandum of transfer to the bank. Suppose the transfer is not registered, then the seller has to
submit a letter of undertaking to the bank for the loan repayment (Law insider, 2018). Such a
promise has to be made within a 7-14 days, or else the buyer will be provided with more time to
pay the balance without any interest charge. In the case where the transfer memo of the buyer is
not registrable, the loan is issued to the supplier and refund liability attached to the undertaking
letter. Therefore, the Export bank has to request the Fair bank to present the undertaking letter
for security purposes. The land tittle deed was also deposited into the bank with a fundamental

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aim of providing a mortgage to prevent the repayment. In this case the bank discharges all the
debts and presents all the documents to the borrower. However, the letter of undertaking is liable
of refund provided the discharge is not registered.
Exports bank must be considering the fact that a company is likely to run into an
insolvency state whereby the liabilities become more than the assets. In such a case, there is a
higher probability that the bank might lose its funds if other liabilities are considered first.
Therefore, the bank opts to make the directors of the company either jointly or in separate liable
for the debts of the company. Therefore, the particulars for the guarantees includes all the
directors of the company and the bank officials. It therefore means all the directors including the
bank officials will participate in the signing operation. In so doing, the company imposes and
joint and several personal guarantees for RM3 million on the directors of the company (FTSB,
2010). Following the fact that agreement made is centered to the personal income of the
directors, attestation process will include a deed which is usually a document that should be
sealed by a third party usually not a participant of the agreement but just a witness (Ledlin
Lawyers, 2018).

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References
Law insider (2018). Execution of debentures [online]. Retrieved from:
https://www.lawinsider.com/clause/execution-of-debentures [Accessed on 24th Dec 2018].
FTSB (2010). Banking Securities [online]. Retrieved from:
file:///C:/Users/denlivy77.DESKTOP-2RVCLTM/Music/banking%20securities.pdf [Accessed
on 24th December 2018].
Ledlin Lawyers (2018). Deeds of guarantees- do they require witnessing [online]? Retrieved
from: https://www.ledlinlawyers.com.au/2016/05/25/deed-of-guarantee/ [Accessed on 24th
December 2018].